The Federal Reserve Bank of St. Louis approved Magna Group Inc.'s acquisition of Homeland Bankshares, Waterloo, Iowa.

The terms of the agreement stated that Magna would issue more than 5 million shares of common stock and $92 million in cash in exchange for all Homeland's outstanding shares of common stock.

The aggregate market value of the acquisition is about $235 million. Homeland shareholders are expected to vote on the transaction Jan. 21.

When the deal was announced Sept. 3, Homeland Bankshares had $1.2 billion of assets spread among 30 Iowa banking offices.

The transaction, which is scheduled to close in the first quarter, would increase Magna Group's assets to $6.6 billion. And Magna would operate a total of 136 banking offices in Illinois, Missouri, and Iowa.

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